KARACHI: The State Bank of Pakistan (SBP) has extended the date for the implementation of International Financial Reporting Standard 9 (IFRS 9) for banks and DFIs having assets size of Rs 500 billion or above from Jan 1, 2023 to Jan 1, 2024.

Based on the feedback received from the relevant stakeholders, the State Bank of Pakistan has taken some decisions regarding the implementation date of IFRS 9.

As per the decision, for banks having asset size of Rs 500 billion or above as of December 31, 2022 and for all the Development Finance Institutions (DFIs), the implementation date has been extended from January 1, 2023 to January 1, 2024. The implementation date for all other banks and Microfinance Banks (MFBs) will remain the same, ie, January 1, 2024.

During the transition period, banks/DFIs/MFBs will continue with their parallel run reporting as per the specified timelines. Nevertheless, early adoption of the Standard is encouraged.

Further, according to SBP, preparation of the annual/interim financial statements on the revised formats by banks and DFIs, has also been extended to the 1st quarter of year 2024.

All other instructions, in the above referred circulars, will however remain unchanged.

Copyright Business Recorder, 2023